BlackBerry Lifts Annual Forecast Following Strong Automotive Software Sales
Waterloo, Thursday, 24 September 2026.
A landmark contract adding over $100 million to its backlog helped BlackBerry increase quarterly revenue by 26%, prompting management to raise its full-year financial outlook.
BlackBerry Lifts Annual Forecast Following Strong Automotive Software Sales
BlackBerry Limited (NYSE: BB) reported its second quarter fiscal year 2027 financial results on September 24, 2026, delivering a significant revenue increase driven by its software divisions [1]. The company announced a 26% year-over-year revenue increase to $163 million for the quarter ending August 31, 2026 [1]. This performance was underpinned by record quarterly revenue in the QNX division and a major design win for its Alloy Kore platform [1]. Following the release, management raised its full-year revenue and profitability guidance for fiscal 2027, citing strong execution across enterprise cybersecurity and automotive software sectors [1]. The report marks the sixth consecutive quarter of positive GAAP net income for the technology firm [1].
Second Quarter Financial Performance
The financial results for the three months ended August 31, 2026, show total revenue of $163.3 million compared to $129.6 million for the quarter ended August 31, 2025 [1]. This growth rate aligns with the calculation 26.003 which approximates the reported 26% increase [1]. Adjusted EBITDA climbed to $47.0 million, an increase from $25.9 million in the prior-year quarter [1]. This represents a year-over-year growth rate expressed as 81.467 [1]. GAAP net income was reported at $33.9 million, a substantial rise from $13.3 million in the same period of 2025 [1]. Additionally, the company generated $29 million in operating cash flow during the quarter [1].
QNX Division and Strategic Design Wins
The QNX segment delivered record quarterly revenue of $80.3 million, growing 27% year-over-year [1]. A key driver for this segment was the announcement on September 22, 2026, that Coretura, a joint venture by Daimler Truck and Volvo Group, selected BlackBerry’s Alloy Kore as the safety-certified foundation for its commercial vehicle software-defined vehicle platform [3]. This deal represents the largest design win in QNX history, adding over $100 million to the QNX royalty backlog [4]. The QNX automotive operating system is currently deployed in 275 million vehicles globally [2]. The Coretura agreement utilizes the Vector Distribution, integrating the automotive OS with middleware capabilities to accelerate development cycles for high-performance compute architectures [4].
Future Outlook and Market Position
BlackBerry issued fiscal 2027 full-year guidance targeting $616–$636 million in total revenue [1]. The company also targets $315–$325 million in QNX revenue and operating cash flow of approximately $115 million for the full year [1]. Market reaction to the news was positive, with shares rising significantly following the Coretura announcement prior to the earnings release [3]. The company’s focus remains on expanding its QNX safety-critical software applications beyond automotive into robotics and medical devices [5]. Investors are monitoring the conversion rate of the $950 million royalty backlog into recognized revenue [2]. The company maintains that actual results could differ due to risks including software customer base retention and macroeconomic conditions [1].